ZDR Investments real estate funds achieve expected returns
In the first four months of 2022, the performance of the ZDR Investments SICAV a.s. Qualified Investor Fund (QIF) in investment class A (growth shares in CZK) was 2.05%. Over the last 12 months, the appreciation of this class reached 8.79%. Investment class C (growth shares in EUR) has brought investors an appreciation of 2.03% since the beginning of the year and 7.60% over the last 12 months.
The ZDR Investments Public SICAV a.s. retail fund has appreciated by 1.34% over the period 01-04/2022 and has returned 6.02% to shareholders over the last 12 months.
Since the beginning of the year, a total of 5 properties have been added to the ZDR Investments fund portfolio, bringing the market value of assets to CZK 9.7 billion.
The first acquisition of 2022 was directed to the QIF and was a production hall in Prague Běchovice, where the tenant is a traditional meat processor with a 20-year lease agreement. A retail park in Bílovec has also been added to the portfolio of the QIF. In May, the acquisitions of the newly built retail parks in Bohumín, Velké Dobrá and Hluboká nad Vltavou were completed, adding to the Public Fund's portfolio.
ZDR Investments funds now manage the funds of nearly 7,000 investors.
Radek Hladký, partner of ZDR Investments, comments on the latest developments and results of the real estate funds:
"We are in an economically uncertain environment with dramatically rising inflation and interest rates. The situation is compounded by the ongoing war in Ukraine and the beginning of monetary restrictions at a time when the global economy is starting to slow down. Despite this, we have delivered the expected returns since the beginning of the year and have delivered steady appreciation for investors. Stability is an essential part of our investment strategy and our focus on grocery stores with accompanying retail focused on basic consumption and widely available goods has proven resilient in adverse economic conditions. We would not have been able to achieve stable appreciation if we had not bet from the beginning on long rate fixations on bank loans, even though they were not always the cheapest solution in times of low interest rates. We finance new acquisitions exclusively in EUR. Compared to CZK-denominated loans, banks' offer prices for medium-term fixings are more than half as low. Double-digit inflation has been a big topic in recent days. Real estate funds have the advantage that they can effectively mitigate its growth through inflation clauses. In the case of our funds, we typically index 80-100% of measured inflation. We continue to see interesting investment opportunities in the market and continue to build a resilient and diversified portfolio that generates stable returns over the long term."